Earnings report: Owens & Minor revenue is steady
- October 30, 2012
THE TAKE: Richmond-based medical and surgical supplier Owens & Minor Inc. reported steady revenues for the third quarter. The third quarter included $49.7 million in revenue from the company’s acquisition of Movianto Group. Net income during the quarter fell 26 percent to $24.6 million, or 39 cents per diluted share, during the quarter, compared with $33.4 million, or 53 cents per diluted share, during the same quarter the previous year. This quarter’s results were affected by $7.8 million in pre-tax costs and lower revenue in the company’s domestic segment because of lower comparative utilization of health-care services, reduced product price inflation, a lower level of government purchasing and one less sales day in the quarter. Domestic revenues were down by $46.5 million.
Revenue: $2.18 billion during the quarter, compared with $2.18 billion in the same period the prior year
Net income: $24.6 million, down from $33.4 million in the third quarter of 2011
Diluted earnings per share: 39 cents, down from 53 cents during the same period last year
THE COMPANY’S TAKE: “With the third party logistics capabilities of the Movianto acquisition and our core U.S. hospital distribution and supply chain services business, Owens & Minor now has global reach with a solid platform for providing third party logistics and other supply chain services,” Craig R. Smith, president and CEO of Owens & Minor, said in a statement. “We believe this acquisition will improve the capacity of our company to serve healthcare providers and manufacturers with efficiency and innovation in a rapidly changing industry. We see emerging opportunity in healthcare and a widening path for Owens & Minor, as we position ourselves for the future.”